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EYECTV is a manufacturer and distributor of high resolution CCTV equipment for the
past seven years, Alvin Co has been newly hired by the company, as accounting manager,
previous accounting manager has so far have updated records turn over to him. The
company employs 200 personnel. Profitable for the past seven years and sales positively
increases, until recently with the past 2 months of the current year of operation, the sales
have failed to rise, causing the cash in-flow shortages and cause delay in implementing new
projects
Affected with the recent development is their valued supplier, Apo Inc., who provides 70%
of EYECTV business requirement. The owner of Apo Inc. knew very well Mr. Alvin Co
who introduce him to the company for the accounting manager position
Aware that the cash shortage shall cause issue of delay in payment of obligation that was
previously been complied at 30 days would extend to 70 days with the present order made
by the Company and the order to be place by Apo Inc. Mr. Alvin Co is hesitant to tell Apo
Inc. of the predicament as he think that telling this will jeopardize EYECTV new product
development
1. Describe the ethical responsibilities of the Accounting Manager?
Yes, the accounting manager should tell to the appropriate official of EYECTV
about the Apo Inc. postponing their order because it is his responsibility to disclose
the true and complete information to the people that are interested in the business. He
should tell it so that the officials may think of some ideas to solve the issue that may
influence the Apo’s Inc. decisions. He shouldn’t make decisions all by himself, it is
better to seek help and recommendations from the top management and his
subordinates to know how to handle the problem.
3. Independent of your answers in #1 and #2, assume that the order has been
postponed by Apo Inc. because the information has been known from the
Purchasing Manager of EYECTV who knew the friendship of Mr. Alvin Co with
Apo Inc. Mr. Co’s concerned is for the Purchasing manager to think that he told
Apo Inc of the cash shortage for reason that the order has been postpone by Apo
Inc. What step should Mr. Alvin Co take to resolve the situation?
The first thing that Mr. Alvin Co, as a manager, should do is to confirm if it is
really the purchasing manager who relayed the information to the Apo Inc. He should
have a talk with purchasing manager and upon confirming it, he should properly and
appropriately tell to the purchasing manager, that their company values and
implements confidentiality. He should tell that only authorized person are allowed to
disclose such information to Apo Inc., and that would be him, Mr. Alvin Co, the
accounting manager. Then after that, it is his responsibility to properly tell to Apo
Inc., about the problems that their company is facing right now, as it would be better
to be honest or your credibility as an accountant manager will be questioned.
SOCIAL RESPONSIBILITY
AND
GOOD GOVERNANCE
ETHICAL CASE #2
Submitted by:
Ria Lynne R. Gabinete
BSBA-MA 4-2
Submitted to:
Noel Almasco
Professor